Daily Digest: Wednesday 27th November
US PCE data for October was the headline data print during Wednesday’s session, with the index serving as the Fed’s preferred inflation gauge. Annually, US inflation now sits at 2.3%, just 0.3 percentage points above the Fed’s 2% target. Monthly figures indicate that core inflation rose by 0.3%, in line with analyst expectations while non core inflation rose by 0.2%. Analysts will now be looking to alter their interest rate bets for the Fed’s December rate decision, marking the final monetary policy meet of 2024. Due to the absence of an inflation shock, it is likely that market expectations for a December cut will remain at 25 basis points which would see the US floating bank rate to fall to 4.25-4.5%.
Heading into Thanksgiving, US equities experienced almost market wide sell-offs as the S&P 500 ($SPX) fell 22.89 points (0.38%) to 5,998.74, the Nasdaq 100 ($NDX) fell 178.41 points (0.85%) to 20,744.49, and the Dow ($INDU) fell 138.25 points (0.31%) to 44,722.06. It is important to note that while PCE played out as the most important print of the session, negative performances were far more likely to be weighed by noise surrounding President Elect Trump and the proposed introduction of import tariffs on a number of foreign nations.
What to Watch Tomorrow
Tokyo Area CPI (Core)
Sources:
https://uk.finance.yahoo.com/world-indices/
https://uk.finance.yahoo.com/commodities
https://www.londonstockexchange.com/indices/ftse-100
https://www.binance.com/en-GB/price/bitcoin
https://www.binance.com/en-GB/price/ethereum
https://qontigo.com/index/sxxp/
Stock Market Activity Today & Latest Stock Market Trends | Nasdaq
https://coinmarketcap.com/charts/#market-cap
https://www.forexfactory.com
Definitions:
YoY - Year on Year, or, Year over Year
MoM - Month on Month, or, Month over Month
QoQ - Quarter on Quarter, or, Quarter over Quarter
ECB - European Central Bank
BOJ - Bank of Japan
Fed - Federal Reserve
BOE - Bank of England
SNB - Swiss National Bank
DOJ - Department of Justice
SEC - Securities & Exchange Commission